Madras High Court
D.Ramamurthy vs The Managing Director on 19 January, 2021
W.P.No.15886 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 19.01.2021
CORAM
THE HONOURABLE MR.JUSTICE S.VAIDYANATHAN
W.P.No.15886 of 2020
1. D.Ramamurthy
2. R.Jayaraman
3. S.Mathiazhagan
4. D.Paramasivam
5. K.Balu
6. N.Kalrayan
7. R.Gunasekaran
8. K.Raju
9. K.Murugan
10. L.Rajendran
11. N.Annadurai ... Petitioners
-vs-
1. The Managing Director,
Tamil Nadu State Transport Corporation (Villupuram) Ltd.,
Salamedu, Villupuram,
Villupuram District.
2. The General Manager,
Tamil Nadu State Transport Corporation (Villupuram-III) Ltd.,
Thiruvannaalai Region, Bye Pass Road,
Vengikkal, Thiruvannamalai District-606 604.
3. The Administrator,
Tamil Nadu State Transport Corporation,
Employees Pension Fund Trust,
Pallavan Salai, Chennai-600 002. ... Respondents
Prayer: Petition filed under Article 226 of Constitution of India to issue a Writ of
Mandamus, directing the respondents to pay interest @ 10% for the belated
payment of gratuity, leave salary and commutation of pension amount to the
petitioners.
1/7
https://www.mhc.tn.gov.in/judis/
W.P.No.15886 of 2020
For Petitioner : Mr.S.T.Varadarajulu
For Respondents : Mr.C.S.K.Sathish
*****
ORDER
The benefits bestowed by law upon an employee in recognition of his
committed continuous loyal and devoted duty by payment of the pension,
gratuity, leave salary etc. are in the nature of property.
2. This right to property cannot be taken away without following due
process of law, as right to property has been recognised under Article 300-A of
the Constitution of India.
3. It is an accepted position that Gratuity and pension are not the
bounties. The concern expressed by the Hon'ble Supreme Court impressing that
the retirement dues must be paid in time, is reflected, in the case of Dr.Uma
Agarwal vs. State of U.P., reported in (1999) 3 SCC 438, and the observation
needs as under:-
“....grant of pension is not a bounty but a right of the
government servant. The Government is obliged to follow the
Rules mentioned in the earlier part of this order in letter and in
spirit. Delay in settlement of retiral benefits is frustrating and
must be avoided at all costs. Such delays are occurring even in
regard to family pensions for which too there is a prescribed
procedure. This is indeed unfortunate. In cases where a retired
government servant claims interest for delayed payment, the
Court can certainly keep in mind the time-schedule prescribed
https://www.mhc.tn.gov.in/judis/
W.P.No.15886 of 2020
in the Rules/Instructions apart from other relevant factors
applicable to each case.”
4. The Tamil Nadu State Transport Corporation is a State as defined
under Article 12 of the Constitution of India. It is expected to be a model
employer and as a State, it is expected to ensure the enjoyment of the
fundamental rights to its employees.
5. Alleging that after retirement, the only source of survival is the
terminal benefits and if it is not paid as per the time schedule prescribed under
various enactments, that it would amount to violation of fundamental rights,
this petition has been filed.
6.It is appropriate to consider the time limit prescribed under payment of
gratuity Act, to understand the need for the timely payment of retirement
dues. The Payment of Gratuity Act, 1972 reads as under:
“4.Payment of gratuity:
(1) Gratuity shall be payable to an employee on the termination
of his employment after he has rendered continuous service for
not less than five years,-
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease;
Provided that the completion of continuous service of five years
shall not be necessary where the termination of the employment
of any employee is due to death or disablement:
https://www.mhc.tn.gov.in/judis/
W.P.No.15886 of 2020
Provided further that in the case of death of the employee,
gratuity payable to him shall be paid to his nominee or, if no
nomination has been made, to the heirs.
Explanation.- For the purposes of this section, disablement
means such disablement as incapacitates an employee for the
work which he was capable of performing before the accident or
disease resulting in such disablement.
(2) to (6) ....”
7.Delay in payment:
Rule 45-A of the Tamil Nadu Pension Rules, 1978 provides that interest
shall be payable on the belated payment beyond a period of two months from
the date of retirement of a Government Servant.
8. The Hon'ble Division Bench of this Court in the case of Government of
Tamil Nadu, Rep. by its Secretary to Government, Revenue Department and
the District Collector, Erode vs. M.Deivasigamani, reported in 2009 (3) MLJ
01 held that an employee is entitled to interest on belated payment of
pension and other retiral benefits, even in the absence of statutory rules /
administrative instructions or guidelines and that he can claim interest
under Part III of the Constitution, relying on Articles 14, 19 and 21 of the
Constitution.
9. Coming to the facts of the present case, the petitioners joined the
https://www.mhc.tn.gov.in/judis/
W.P.No.15886 of 2020
respondent Corporation as Conductor and Drivers and retired from service on
different dates as Special Grade Conductor / Drivers on reaching the age of
superannuation. They have now filed this writ petition seeking for a direction to
the respondents to pay interest for the belated payment of gratuity, leave
salary and commutation of pension amount.
10. The First Bench of this Court in similar matter has passed an order
dated 12.06.2015 in W.A.(MD) Nos.383 to 457 of 2015, issuing direction to the
transport Corporations to settle the terminal benefits of its employees in equal
monthly installments and to pay 6% interest on the terminal benefits payable to
the workman. The Bench has also held that workman is entitled to 18% interest
for the defaulted period of installments.
11. In these circumstances, the writ petition is disposed of with the
following directions:-
I) A direction is issued to the transport corporation to pay interest @ 6%
per annum, as per the Division Bench judgment referred to above, for the
belated payment of gratuity, leave salary and commutation of pension amount
that are yet to be settled, in six equal monthly instalments, commencing from
01.03.2021. In case of delay in making instalments within the time stipulated
https://www.mhc.tn.gov.in/judis/
W.P.No.15886 of 2020
supra, the interest payable could be 10% for the delayed period to be recovered
from the Officer responsible for disbursement of the amount;
ii) The aforesaid direction to pay interest would not preclude the
workmen to question the computation of any of the terminal benefits, if the
same is paid lesser than the amount to which, they are entitled to receive.
Likewise, if the petitioners have any grievance that they are entitled to interest
for the amount already settled, they can agitate the same as per law, if they
are entitled. No costs.
19.01.2021
Index: Yes / No
Internet: Yes / No
Speaking Order: Yes / No
ar
Note: Issue order copy on 09.02.2021
https://www.mhc.tn.gov.in/judis/
W.P.No.15886 of 2020
S.VAIDYANATHAN, J.
ar
To:
1. The Managing Director,
Tamil Nadu State Transport Corporation (Villupuram) Ltd.,
Salamedu, Villupuram,
Villupuram District.
2. The General Manager,
Tamil Nadu State Transport Corporation (Villupuram-III) Ltd.,
Thiruvannaalai Region, Bye Pass Road,
Vengikkal, Thiruvannamalai District-606 604.
3. The Administrator,
Tamil Nadu State Transport Corporation,
Employees Pension Fund Trust,
Pallavan Salai, Chennai-600 002.
W.P.No.15886 of 2020
19.01.2021
https://www.mhc.tn.gov.in/judis/
